Impose higher taxes on super-rich: Economists

Impose higher taxes on super-rich: Economists

Leading economists have asked the government to levy higher taxes on super-rich, encourage small savings and try to bring down inflation to 4-5 per cent.

During their customary pre-budget interaction with Finance Minister P Chidambaram, they also suggested introduction of inheritance tax and widening of tax base to increase revenue and contain fiscal deficit.

Inviting suggestions from economists, Chidambaram said economic and political developments in the Eurozone area and the US had their impact on the world economy, including India.

Impose higher taxes on super-rich: Economists

He informed the economists that direct tax collections are satisfactory while indirect taxes including excise duty are falling short of expectations.

Suggestions given by economists, according to a release, included "following of principle of progressivity i.e. higher tax rates for high income group, widening of tax base and effective enforcement of tax laws to penalise those who hide their income and pay less tax as well as those who despite high income do not pay any tax at all".